LMS types: What systems are available and which one is right for your company?
What types of LMS are there and how do they differ?
LMS types differ primarily in terms of their technical setup, flexibility, costs, and the amount of administrative effort involved. There are cloud-based, on-premise, open source, commercial, and custom LMSs, as well as specialized variants such as LXPs and systems for collaborative learning. Below, you’ll find out which learning management system (LMS) best suits your requirements.
Brief overview of LMS types
The most important information in a nutshell
Cloud LMS
Access from anywhere, low IT load, ideal for global companies
On-premise LMS
Local installation, maximum data control, suitable for government agencies and corporations
Open source LMS
Free and customizable, but technically demanding
Commercial LMS
Maintenance-free, professionally supported, secure, and scalable
Custom LMS
Customized development for specific processes
LXP
Focus on learning experience and personalization
Collaborative learning systems
Sharing knowledge, learning from each other, growing together
What is a learning management system (LMS)?
A learning management system (LMS) is software that is used to manage and distribute learning content and evaluate learning progress centrally. Companies use an LMS to efficiently organize training courses, eLearning, and CPD offerings. Learners can access courses anytime, anywhere, while administrators manage the content and analyze results. Modern LMSs also support mobile learning, gamification, and personalized learning paths.
What is a cloud-based LMS (SaaS)?
A cloud-based LMS (software as a service) is a learning platform that is operated entirely online. The software is hosted and maintained by the provider, so no local installation or separate IT infrastructure is required. Users simply access the system via their browser and benefit from automatic updates, high availability, and flexible scalability.
Typical features and functions:
- Access anytime, anywhere via your browser
- No local installation or server required
- Automatic updates and maintenance performed by the provider
- Flexible scalability in terms of user numbers and storage space
Typical use cases and target groups:
Ideal for companies with distributed teams, international locations, or mobile learning.
Examples: Knowledgeworker Share, Cornerstone, Eurekos
Advantages
- Lower IT costs
- Fast implementation
- Predictable licensing costs
Disadvantages
- Data on external servers
- Dependence on the provider
- Internet connection required
What is an on-premise LMS?
An on-premise LMS is a learning management system that is installed on a company’s own servers and operated internally. The organization handles maintenance, updates, and data security in-house. This solution offers maximum control over systems and data, but requires more IT resources and maintenance.
Typical features and functions:
- Full control over data and infrastructure
- Offers a high degree of customization
- Maintenance and updates are performed by your own IT department
Typical use cases and target groups:
Popular with corporations, government agencies, and organizations with sensitive data (e.g., banks, public services).
Advantages
- Maximum data security
- Independence from external providers
- Individual customizations
Disadvantages
- High maintenance costs
- High initial outlay
- Longer implementation time
What is an open source LMS?
An open source LMS is a freely available learning platform whose source code is publicly accessible and can be customized. Companies and educational institutions can use the system free of charge and expand it as needed. However, this requires technical expertise as installation, maintenance, and support must be handled in-house.
Typical features and functions:
- Freely available software
- Can be customized by internal developers
- Great community support
Typical use cases and target groups:
Ideal for educational institutions, universities, and non-profit organizations.
Advantages
- No licensing fees
- High flexibility
- Independence from the provider
Disadvantages
- Technical effort
- No guaranteed support
- Internal responsibility for security and maintenance
What is a commercial LMS?
A commercial LMS is a professional learning platform that is developed and maintained by a provider and made available as a licensed solution. It offers regular updates, technical support, and high reliability. Companies benefit from investment security and low IT costs, but pay licensing or usage fees.
Typical features and functions:
- Maintenance-free through SaaS or managed service offerings
- User-friendly interface and support
- GDPR-compliant, reliable, scalable
Typical use cases and target groups:
Suitable for medium-sized and large companies that need reliability and compliance.
Examples: Knowledgeworker Share, Cornerstone, Eurekos
Advantages
- Investment security
- Professional support
- Regular updates
Disadvantages
- Licensing fees
- Less customization
- Dependence on the provider
What is a custom/individual LMS?
A custom or individual LMS is a learning platform that is specifically tailored to your company’s processes, requirements, and systems. The design, functions, and interfaces can be fully customized. This solution offers maximum flexibility, but involves higher development and maintenance costs.
Typical features and functions:
- Custom design, branding, and features
- Deep integration into existing systems (HR, ERP, CRM)
- Flexible role and process design
Typical use cases and target groups:
Ideal for corporations or organizations with complex learning processes and their own IT teams.
Advantages
- Tailored solution
- Maximum control
- Seamless integration
Disadvantages
- High development costs
- Long implementation time
- Higher maintenance costs
What is an LXP (learning experience platform)?
A learning experience platform (LXP) is a modern learning platform that focuses on the individual learning experience. It uses AI to provide personalized learning recommendations, promote social interactions, and deliver microlearning. Unlike traditional LMS systems, an LXP focuses less on administration and more on learner motivation and engagement.
Typical features and functions:
- AI-supported recommendations
- Social learning and microlearning
- Modern, user-centric interface
Typical use cases and target groups:
Perfect for companies that want to get their employees more involved in the learning process.
Examples: EdCast
Advantages
- High motivation to learn
- Personalized learning paths
- Fosters a culture of learning
Disadvantages
- Fewer administrative functions
- Often higher licensing costs
- Requires a clear learning strategy
What is a collaborative learning system?
A collaborative learning system is a learning platform that encourages shared learning and the exchange of knowledge between employees. Users create, share, and discuss content with each other, generating collective knowledge. Systems like this strengthen the learning culture within the company and make learning an active, social process.
Typical features and functions:
- Peer learning and user-generated content
- Feedback functions and team rooms
- Gamification elements for motivation
Typical use cases and target groups:
Used in knowledge-intensive industries, start-ups, or innovative companies with an active learning culture.
Advantages
- Fosters a culture of learning and communication
- Authentic knowledge drawn from practical experience
- Strengthens personal responsibility
Disadvantages
- Requires active moderation
- Quality control required
- Learning progress difficult to measure
LMS examples
Knowledgeworker Share: eLearning tool specialist
Knowledgeworker Share is a lean, fast, and user-friendly eLearning tool that is widely regarded as a specialist among learning management systems. It offers functions and features that have been specifically designed to optimize the learning and evaluation process. It is the ideal solution for small and medium-sized companies that operate both nationally and internationally. Companies that want to carry out focused or selective learning processes in particular benefit from the efficiency and precision of this eLearning tool.
Eurekos: The analysts’ favorite
Eurekos is the ideal learning management system for companies with growth in mind. It was developed from the ground up for the management and organization of flexible user numbers. Whether you’re working with customers, partners, or employees, you can reach all of your target groups with one central solution. Intelligent automation, a flexible licensing model, powerful content management tools, and integrated e-commerce functions make Eurekos
the perfect companion for your expansion strategy. And all this with clearly calculable costs, no overblown licensing models, and no lengthy rollouts.
Cornerstone SBX/CSX: eLearning tool for professionals
Use this eLearning tool to offer your staff further development opportunities throughout the entire employee life cycle: from onboarding to on-the-job training, and upskilling to individual learning paths. Cornerstone grows with your needs and can be expanded on a modular basis to include performance management, recruitment, onboarding, HR, compliance management, talent management, and skills management. With seamless integration into other systems and access to content from 200 premium partners, Cornerstone provides a centralized platform for managing, assigning, automating, and monitoring all training at your company. Use flexible learning workflows and offer personalized, brand-specific experiences to increase productivity and efficiency.
EdCast by Cornerstone: eLearning tool for AI-supported learning worlds
With EdCast by Cornerstone, you can offer your employees a modern learning experience platform (LXP) that provides personalized and AI-supported learning content. The platform supports self-directed learning and enables knowledge to be acquired through customized learning paths and relevant content. EdCast integrates seamlessly with other systems and provides access to an extensive library of premium content. Use social learning features and gamification to increase employee engagement and continuously develop learners’ skills. EdCast helps you meet your organization’s learning needs while creating an inspiring and connected learning experience.
FAQs
Frequently asked questions about LMS types
What’s the difference between an LMS and an LCMS?
You need an LCMS for (online course) content creation. A traditional LMS is primarily used to manage learning processes.
Which is better: Cloud or on-premise LMS?
Cloud systems are flexible and low-maintenance, while on-premise systems offer maximum control. The decision depends on your data protection requirements. Bear in mind, however, that some cloud systems have strict hosting requirements, meaning that their data security is very high, too.
Are open source LMSs GDPR-compliant?
Yes, provided they are hosted and configured correctly. The responsibility lies with the operator.
How can I determine which type of LMS is best suited to my company?
Analyze your goals, IT resources, and data protection requirements. A cloud LMS is suitable for fast, flexible implementations, while on-premise systems offer full control over data. A consultation or trial period will help you find the best match for your learning strategy.
What does a learning management system cost on average?
The costs vary depending on the type and provider. Open source systems are free, but you’ll incur implementation and maintenance costs. Commercial and cloud LMSs usually start at a few euro per user per month, but offer support, hosting, and security in return.
Can an LMS be retroactively customized or expanded?
Yes, most modern LMSs can be expanded modularly or integrated with tools such as authoring systems, HR software, and AI functions. Custom and open source solutions in particular offer maximum flexibility for individual customization.
What role does data protection play in choosing an LMS?
Data protection is crucial, especially when using cloud solutions. Ensure your solution offers GDPR compliance, hosting locations in the EU, and contractual agreements on data processing. Many providers also offer ISO certifications for information security.
The bottom line.
Choosing the right type of LMS is a strategic step in your digital learning strategy. While cloud systems excel in flexibility, on-premise solutions impress with their security, and custom solutions with their tailored features. Let us advise you on which LMS best supports your learning strategy and which combination offers the greatest long-term added value for your company.
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